ELIZABETH CITY - United States Attorney George E.B. Holding announced that in
federal court on April 26, 2011, CALVIN COLWETH GARNER, JR., also known as “Spoke”,
35, of Roanoke Rapids, North Carolina, pleaded guilty before United States District Judge Terrence
W. Boyle to conspiracy to distribute 50 grams or more of cocaine base (crack) and 5 kilograms of
cocaine powder in violation of Title 21, United States Code, Section 846, and conspiracy to commit
money laundering in violation of Title 18, United States Code, Section 1956(h).

GARNER has been in federal custody since his arrest by
federal authorities on October 1, 2010. He faces up to life
imprisonment and a $4,000,000.00 fine.

The investigation of GARNER revealed that GARNER’S drug
trafficking activities dated back to 1989. According to
investigators, GARNER sold one individual approximately 44
kilograms of cocaine powder between 1995 and 2004 for approximately
$1.25 million. Investigators also learned that GARNER’S drug
trafficking organization obtained large quantities of cocaine from
Texas, Florida, Georgia, and Louisiana utilizing vehicles with
hidden compartments that could carry at least twenty (20) kilograms
of cocaine per trip. According to investigators, numerous
individuals cooperated with law enforcement in the investigation
against GARNER, and provided information about GARNER’s leadership
in the drug organization.

The investigation revealed that GARNER filed just one tax
return between 2002 and 2008, in which he reported an adjusted
gross income of $2,500.00 in 2007. Yet, during this time, GARNER
made numerous large, cash expenditures on items that included a new
2003 H2 Hummer for more than $60,000.00, drag racing motorcycles
and cars, a floor stripping machine for more than $25,000.00, a
1994 Fleetwood Coronado Motorhome for $17,760.00. In 2007, GARNER
purchased $28,600.00 in casino chips at a casino in Las Vegas,
Nevada.

According to investigators, GARNER used numerous business
entities to launder his drug proceeds - including “Rush
Entertainment,” “Roanoke Valley Investors,” and “Kalyb’s Carpet &
Tile,” which is named after his son. GARNER also instructed
numerous people to put property he purchased in their names so he
could conceal his ownership of the property. Some of these
individuals knowingly made payments for the purchase of items with
GARNER’S drug proceeds. For example, in 2006, GARNER and a co-conspirator purchased the 1994 Fleetwood Coronado Motorhome or RV
from Roland Holmes Auto Sales in Roanoke Rapids, North Carolina,
for $17,760.00 using drug proceeds.

This case was part of OPERATION BURNOUT, an investigation
being conducted by the Federal Bureau of Investigation, Internal
Revenue Service - Criminal Investigative Division, Bureau of
Alcohol, Tobacco, Firearms, and Explosives, North Carolina State
Bureau of Investigation, and the Halifax and Nash County Sheriff’s
Offices targeting drug traffickers in and around Halifax County and
Nash County. Approximately 35 individuals have been federally
prosecuted as part of this investigation.

In response to this case, Mr. Holding stated, “This investigation is a prime
example of the results that can be achieved when local, state, and
federal law enforcement work together. The agents involved in this
investigation have worked countless hours and have done a
tremendous job. We are grateful for their hard work and will
continue to join forces with them to dismantle the drug
distribution network operating in our district.”

Assistant United States Attorneys Josh Royster and Glenn Perry served as the prosecutors
for the government.